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Posted by ryker on March 9, 2007, 4:59 am
Didn't know how to title the subject. Not new to this, financial
investing, banks, etc., and I know about the FDIC insurance.
But what do most people do. Wife and I are a few years from retirement,
and we have over what the FDIC insures at a bank, even for joint tenants.
What do people with even more money than we have do to protect their
money in a bank. Not really fearful that the bank will go out as in the
depression, but say someone has 20 times more than what the FDIC
insures (more than we have too), do they have accounts at 20 different
banks or what? Or do they even care with that amount?
Not trying to be flippant in this question, but it has always made me
wonder what do I do to protect what I do have. Several different banks,
with different accounts. Would genuinely like to know someones opinion?
Thanks
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Posted by John A. Weeks III on March 9, 2007, 8:47 am
> Didn't know how to title the subject. Not new to this, financial
> investing, banks, etc., and I know about the FDIC insurance.
>
> But what do most people do. Wife and I are a few years from retirement,
> and we have over what the FDIC insures at a bank, even for joint tenants.
>
> What do people with even more money than we have do to protect their
> money in a bank. Not really fearful that the bank will go out as in the
> depression, but say someone has 20 times more than what the FDIC
> insures (more than we have too), do they have accounts at 20 different
> banks or what? Or do they even care with that amount?
People generally do not have that much money in FDIC protected
accounts. Consider moving money to brokerages where you are
protected by vastly higher limits, and at the very least look
at money market accounts and brokered CD's rather than the stuff
that banks offer.
The problem that you may face at your age is that you have gone
so conservative (putting everything in low return bank instruments)
that you risk out-living your money. Lets say you are 60. You
could very well live to be 85, and 95 is not out of the question.
That is 35 more years. In comparison, that is like sitting down
at the dinner table while Jimmy Carter was President to plan how
you would live today in retirement. During the Carter era, we
had massive inflation and 20% interest rates. Who could have
guessed back then that we would have two monumental bull markets
just over the horizon? With the dow at 875, who could have even
thought of the dow above 10,000?
My point is that you need exposure to the market with this money,
unless you have critical mass where you can safely live off of the
interest for at least 30 more years, and longer if needed.
-john-
--
======================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================
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Posted by joetaxpayer on March 9, 2007, 9:33 am
John A. Weeks III wrote:
>
>
>>Didn't know how to title the subject. Not new to this, financial
>>investing, banks, etc., and I know about the FDIC insurance.
>>
>>But what do most people do. Wife and I are a few years from retirement,
>>and we have over what the FDIC insures at a bank, even for joint tenants.
>>
>
>
> People generally do not have that much money in FDIC protected
> accounts. Consider moving money to brokerages where you are
> protected by vastly higher limits, and at the very least look
> at money market accounts and brokered CD's rather than the stuff
> that banks offer.
>
This is one time "immediate annuity" may make financial sense. (there. I
said annuity. Mark Twain said "the difference between the right word,
and almost-right word, is the difference between lightening and a
lightening bug." This, to me, is the difference between the immediate
annuity which is right for a good slice of retirees, and a VA, which I
abhor, mostly.
JOE
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Posted by bo peep on March 9, 2007, 10:18 am
> Several different banks,
> with different accounts.
First, find out how much of it is actually already insured - it's not
as simple as some people make it out to be. Use the calculator at
http://www2.fdic.gov/edie/
Second, it's not all that difficult to have a *lot* of accounts at
multiple institutions. A friend of mine had a 7 digit net worth, and
had insured CDs at something like 18 banks. If they are 2 year CDs,
very little time is required to monitor them, on an annual basis. If
you use a software program like Quicken, it is even easier.
John Cowart
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Posted by PeterL on March 9, 2007, 12:47 pm
> Didn't know how to title the subject. Not new to this, financial
> investing, banks, etc., and I know about the FDIC insurance.
>
> But what do most people do. Wife and I are a few years from retirement,
> and we have over what the FDIC insures at a bank, even for joint tenants.
>
> What do people with even more money than we have do to protect their
> money in a bank. Not really fearful that the bank will go out as in the
> depression, but say someone has 20 times more than what the FDIC
> insures (more than we have too), do they have accounts at 20 different
> banks or what? Or do they even care with that amount?
>
> Not trying to be flippant in this question, but it has always made me
> wonder what do I do to protect what I do have. Several different banks,
> with different accounts. Would genuinely like to know someones opinion?
>
> Thanks
Buy US treasuries.
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